Food Program Reimbursement

[sharlan]

I've always claimed it, but was told this past year by my food program rep, my CPA, and my dd who is an accountant for a school district food services that I do not claim this as income.

Are they correct?

[MarinaVanessa]

I've always claimed it also and I tried to find something online about it but I don't see anything more recent than 3 years ago on any website.

Definitely a Tom Copeland question but I did go through Tom's blog all the way to January and didn't see a post about these changes.

[hwichlaz]

it is income...you claim it as such. you'll get a 1099 misc for it at the end of the year. It just gets cancelled out when you also claim the meals as an expense

[hwichlaz]

Just pretend that your sponsor is a daycare family writing you a check every month.

[hwichlaz]

and do NOT trust anyone that doesn't specialize in daycare taxes on this issue....there are so many things that ONLY apply to daycares.

Ask Tom Copeland

[sharlan]

Originally Posted by hwichlaz

it is income...you claim it as such. you'll get a 1099 misc for it at the end of the year. It just gets cancelled out when you also claim the meals as an expense

I have never received a 1099 from the food program.

[hwichlaz]

I get one every year. I'm pretty sure they are required to give you a year end statement of some kind, not necessarily a 1099. I get a 1099 saying how much they paid me for the year along WITH a statement telling me how many meals of each type to claim as an expense on my taxes ...the even deduct the meals I fed my own child for me and add in my non-reimbursed meals.

[hwichlaz]

Either way...here.

http://tomcopelandblog.com/are-cacfp...taxable-income

[daycare]

Originally Posted by sharlan

I have never received a 1099 from the food program.

I have never claimed it and have never gotten an audit

[hwichlaz]

Originally Posted by daycare

I have never claimed it and have never gotten an audit

do you deduct the meals you serve as an expense?

[daycare]

Originally Posted by hwichlaz

do you deduct the meals you serve as an expense?

Yes but only the ones I don't get reimbursed for.

[hwichlaz]

Originally Posted by daycare

Yes but only the ones I don't get reimbursed for.

Then you are claiming the income, just not by the recommended method. It's covered in the article I linked.

[TomCopeland]

Originally Posted by hwichlaz

I get one every year. I'm pretty sure they are required to give you a year end statement of some kind, not necessarily a 1099. I get a 1099 saying how much they paid me for the year along WITH a statement telling me how many meals of each type to claim as an expense on my taxes ...the even deduct the meals I fed my own child for me and add in my non-reimbursed meals.

Food Program sponsors are not required to issue Form 1099 to providers. Some do, the vast majority don't. I posted a letter on my website from the IRS saying Form 1099 is not required. You should not report as income any reimbursements you received for your own child, and you cannot deduct any food served to your own child.

[hwichlaz]

Originally Posted by TomCopeland

Food Program sponsors are not required to issue Form 1099 to providers. Some do, the vast majority don't. I posted a letter on my website from the IRS saying Form 1099 is not required. You should not report as income any reimbursements you received for your own child, and you cannot deduct any food served to your own child.

I'm really lucky that they give me a statement of total meals served, total reimbursed, and total NOT reimbursed. My 1099 does NOT include the amount for my own children. That's in addition to the 1099. The 1099 includes our subsidy payments as well. So if they aren't required to just give you a statement....do they have to if you request one?

[TomCopeland]

Originally Posted by hwichlaz

I'm really lucky that they give me a statement of total meals served, total reimbursed, and total NOT reimbursed. My 1099 does NOT include the amount for my own children. That's in addition to the 1099. The 1099 includes our subsidy payments as well. So if they aren't required to just give you a statement....do they have to if you request one?

No, they don't have to give you a statement, but they should.

[laundrymom]

Usually it's in the claim site and you just print it out from the program you submit claims on.

Originally Posted by hwichlaz

I get one every year. I'm pretty sure they are required to give you a year end statement of some kind, not necessarily a 1099. I get a 1099 saying how much they paid me for the year along WITH a statement telling me how many meals of each type to claim as an expense on my taxes ...the even deduct the meals I fed my own child for me and add in my non-reimbursed meals.

[sharlan]

Originally Posted by laundrymom

Usually it's in the claim site and you just print it out from the program you submit claims on.

That's what I've always done. I've never received a 1099 from any of the programs I've belonged to over the years.

[sharlan]

Thank you Tom for your clarification.